Davis Regulator Co. v. Commissioner
United States Board of Tax Appeals
1. For many years petitioner had carried on a manufacturing business in a building held under lease. Under threat of condemnation by a railway company the petitioner sold its leasehold to it. Being unable to find a building suitable for its business in the same locality, it forthwith and within the taxable year used a part of the money received from the railway company for the construction, upon land owned by it, of a building.
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1. For many years petitioner had carried on a manufacturing business in a building held under lease. Under threat of condemnation by a railway company the petitioner sold its leasehold to it. Being unable to find a building suitable for its business in the same locality, it forthwith and within the taxable year used a part of the money received from the railway company for the construction, upon land owned by it, of a building. It moved its machinery and equipment to the new building and conducted therein the same manufacturing business formerly carried on in the leased building. Held, an…
1Opinion of the Court
*442OPINION.
Mellott:
The petitioner contends that no part of the $82,574.55, expended by it in the acquisition of a new building for its manufacturing business out of the $95,000 received in connection with the sale or cancellation of its leasehold, represents recognizable gain to it because of the provisions of section 112 (f) of the Revenue Act of 1928. The section, in so far as pertinent here, is set out in the margin.1
The respondent contends that there was merely a sale or release by petitioner of a portion of its personal property and the subsequent purchase by it of real property; that “the…
2Cases cited1 opinion
- People ex rel. Healy v. SheddIllinois Supreme Court · 1909
3Cited by4 opinions
- Phyllis A. Woodall and Jeannie S. Coutta v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1992
- Woodall v. CommissionerUnited States Tax Court · 1991
- Davis Regulator Co. v. CommissionerUnited States Board of Tax Appeals · 1937
- Woodall v. C.I.R.Court of Appeals for the Fifth Circuit · 1992